PenFed Visa card for Gas program changing, now with a fee.

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
User avatar
gnosis
Posts: 347
Joined: Wed Aug 13, 2008 9:05 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by gnosis » Fri Sep 06, 2013 5:28 pm

EmergDoc wrote:
gnosis wrote: This is the same letter I received today, and it said nothing about the rewards being reduced to 3%. :confused
Look at the back of the paper.
Oh for cryin' out loud!! I didn't see there was a back side. I will be canceling this card. It's not worth it to me. I still have three other credit cards with rewards (Starwood Amex, Chase Freedom, Discover More)

Topic Author
mediahound
Posts: 703
Joined: Fri Mar 02, 2007 5:43 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by mediahound » Fri Sep 06, 2013 6:53 pm

By the way, the letter doesn't say anything about a certificate of deposit being one of the types of accounts that you could get to qualify for 5% cashback on gas and no annual fee. Money market account, yes, but not certificate of deposit.

User avatar
mmmodem
Posts: 1861
Joined: Thu May 20, 2010 1:22 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by mmmodem » Fri Sep 06, 2013 6:54 pm

Ack! Just got my notice too. I have my money at a brick and mortar bank, a high yield online savings account, 401k, Vanguard, TreasuryDirect and soon to some 529. I don't think I can stomach the complexity of money at another banking institution. Knox Federal CU apparently still has a 5% card. Time to cancel and do the switcheroo.
http://www.fortknoxfcu.org/visa.html

User avatar
runner9
Posts: 2089
Joined: Tue Aug 02, 2011 8:49 pm
Location: Ohio

Re: PenFed Visa card for Gas program changing, now with a fe

Post by runner9 » Fri Sep 06, 2013 9:14 pm

https://www.penfed.org/Platinum-Cash-Rewards/

Info on the page, as if applying now, says 5% through October statement closing date. The detail page for the 3% "standard" says annual fee of $0.

I still don't have a letter, and my closing date is the 2nd of the month.

bayview
Posts: 1878
Joined: Thu Aug 02, 2012 7:05 pm
Location: WNC

Re: PenFed Visa card for Gas program changing, now with a fe

Post by bayview » Fri Sep 06, 2013 10:32 pm

Got my letter today. :( I turn into a pumpkin on October 26.

On the back, it says:

IMPORTANT NOTICE: CHANGES TO YOUR REWARDS STRUCTURE:

Effective in your November statement, you will begin earning 3% cash back on gas purchases paid at the pump and you will no longer earn 0.25% on all other purchases on your PenFed Platinum Cash Visa Card.

HOW YOU CAN CONTINUE TO EARN 5% ON GAS PURCHASES

You may continue to enjoy 5% on gas purchases paid at the pump and avoid an annual fee by obtaining a qualifying PenFed product:
- Active checking account with direct deposit ($250 min.)
- Money Market Certificate or IRA Certificate
- Mortgage
- Installment loan
- Equity Loan or Equity Line of Credit with a balance

Credit cards and unsecured lines of credit are not qualifying PenFed products.

Accounts earning 3% on gas purchases will be evaluated monthly to determine if you have obtained a qualifying product. You will begin earning 5% back on gas purchases when you obtain a qualifying product. Please allow up to 90 days for this change Please see summary chart below.


The summary chart says
Without Qualifying Product: 3% c.b on gas / 0% c.b. on all other purchases / annual fee $25 / foreign transaction fee: none
With Qualifying Product: 5% c.b. on gas / 0% c.b. on all other purchases / annual fee: none / foreign transaction fee: none

I suppose it's coughing up $1000 for a CD or just closing it. I have two cards paying 3% plus the occasional other card paying 5% for a quarter or something, but I'll lose $27K in available credit. No, I don't need it, and no, I don't know why they gave me so much. Oh well.

Here are the CD rates:

Term Dividend Rate APY
6 Month 0.30% 0.30%**
1-Year 0.500% 0.50%
2-Year 1.000% 1.00%
3-Year 1.250% 1.26%
4-Year 1.400% 1.41%
5-Year 1.550% 1.56%
7-Year 1.740% 1.76%
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

Topic Author
mediahound
Posts: 703
Joined: Fri Mar 02, 2007 5:43 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by mediahound » Fri Sep 06, 2013 10:45 pm

bayview wrote:Got my letter today. :( I turn into a pumpkin on October 26.

On the back, it says:

IMPORTANT NOTICE: CHANGES TO YOUR REWARDS STRUCTURE:

Effective in your November statement, you will begin earning 3% cash back on gas purchases paid at the pump and you will no longer earn 0.25% on all other purchases on your PenFed Platinum Cash Visa Card.

HOW YOU CAN CONTINUE TO EARN 5% ON GAS PURCHASES

You may continue to enjoy 5% on gas purchases paid at the pump and avoid an annual fee by obtaining a qualifying PenFed product:
- Active checking account with direct deposit ($250 min.)
- Money Market Certificate or IRA Certificate
- Mortgage
- Installment loan
- Equity Loan or Equity Line of Credit with a balance

Credit cards and unsecured lines of credit are not qualifying PenFed products.

Accounts earning 3% on gas purchases will be evaluated monthly to determine if you have obtained a qualifying product. You will begin earning 5% back on gas purchases when you obtain a qualifying product. Please allow up to 90 days for this change Please see summary chart below.


The summary chart says
Without Qualifying Product: 3% c.b on gas / 0% c.b. on all other purchases / annual fee $25 / foreign transaction fee: none
With Qualifying Product: 5% c.b. on gas / 0% c.b. on all other purchases / annual fee: none / foreign transaction fee: none

I suppose it's coughing up $1000 for a CD or just closing it. I have two cards paying 3% plus the occasional other card paying 5% for a quarter or something, but I'll lose $27K in available credit. No, I don't need it, and no, I don't know why they gave me so much. Oh well.

Here are the CD rates:

Term Dividend Rate APY
6 Month 0.30% 0.30%**
1-Year 0.500% 0.50%
2-Year 1.000% 1.00%
3-Year 1.250% 1.26%
4-Year 1.400% 1.41%
5-Year 1.550% 1.56%
7-Year 1.740% 1.76%
Again, nowhere does it state a CD qualifies.

bayview
Posts: 1878
Joined: Thu Aug 02, 2012 7:05 pm
Location: WNC

Re: PenFed Visa card for Gas program changing, now with a fe

Post by bayview » Fri Sep 06, 2013 11:10 pm

mediahound wrote:
bayview wrote: ...HOW YOU CAN CONTINUE TO EARN 5% ON GAS PURCHASES

You may continue to enjoy 5% on gas purchases paid at the pump and avoid an annual fee by obtaining a qualifying PenFed product:
- Active checking account with direct deposit ($250 min.)
- Money Market Certificate or IRA Certificate
- Mortgage
- Installment loan
- Equity Loan or Equity Line of Credit with a balance

Credit cards and unsecured lines of credit are not qualifying PenFed products...

...Here are the CD rates:

Term Dividend Rate APY
6 Month 0.30% 0.30%**
1-Year 0.500% 0.50%
2-Year 1.000% 1.00%
3-Year 1.250% 1.26%
4-Year 1.400% 1.41%
5-Year 1.550% 1.56%
7-Year 1.740% 1.76%
Again, nowhere does it state a CD qualifies.
Credit unions have different terms for their products. The rates I quoted are for their "Money Market Certificates", which is what they call their CD product. When you Google penfed cd, you get this: https://www.penfed.org/Money-Market-Certificate/.

IIRC, the rates are the same on the IRA certificates.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

User avatar
BrandonBogle
Posts: 2148
Joined: Mon Jan 28, 2013 11:19 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by BrandonBogle » Fri Sep 06, 2013 11:10 pm

Mediahound, a Money Market Certificate is a Certificate of Deposit.

Topic Author
mediahound
Posts: 703
Joined: Fri Mar 02, 2007 5:43 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by mediahound » Fri Sep 06, 2013 11:22 pm

Okay, I stand corrected.

BWong
Posts: 1
Joined: Sat Sep 07, 2013 11:39 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by BWong » Sat Sep 07, 2013 11:46 am

To anyone who is opening a CD to keep the rates/no fees, what length are you planning on doing? I was thinking a 2 year CD so that I only have to reopen it every other year. I would consider a longer one, but who knows when they will change the rules again and I don't want to get locked into a CD I don't want. If I did a 6 month would I have to reopen it every 6 months or could I just have a CD for half a year and reap the benefits?

User avatar
LadyGeek
Site Admin
Posts: 58765
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: PenFed Visa card for Gas program changing, now with a fe

Post by LadyGeek » Sat Sep 07, 2013 11:59 am

BrandonBogle wrote:Mediahound, a Money Market Certificate is a Certificate of Deposit.
Agreed. If you want a broader perspective, take a look in the wiki: Money markets. A CD is a money market instrument.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

User avatar
TomatoTomahto
Posts: 9752
Joined: Mon Apr 11, 2011 1:48 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by TomatoTomahto » Sat Sep 07, 2013 1:07 pm

I might have missed this, but does a CD keep the gas % at 5%, or just avoid the $25 fee?
Okay, I get it; I won't be political or controversial. The Earth is flat.

guitarguy
Posts: 1787
Joined: Mon Dec 20, 2010 4:10 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by guitarguy » Sat Sep 07, 2013 1:12 pm

TomatoTomahto wrote:I might have missed this, but does a CD keep the gas % at 5%, or just avoid the $25 fee?
It keeps the card as is: no fee and 5% on gas.

User avatar
BrandonBogle
Posts: 2148
Joined: Mon Jan 28, 2013 11:19 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by BrandonBogle » Sat Sep 07, 2013 1:16 pm

guitarguy wrote:
TomatoTomahto wrote:I might have missed this, but does a CD keep the gas % at 5%, or just avoid the $25 fee?
It keeps the card as is: no fee and 5% on gas.
Not quite as-is, as the card still loses the 0.25% on everything other than gas. But yes, it avoids the fee and keeps the 5% on gas.

Ricola
Posts: 672
Joined: Sat Apr 26, 2008 10:38 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by Ricola » Sat Sep 07, 2013 2:26 pm

Even if keeping the card it is basically just a gas card now that they removed all other incentives. Amex looking better now.

User avatar
runner9
Posts: 2089
Joined: Tue Aug 02, 2011 8:49 pm
Location: Ohio

Re: PenFed Visa card for Gas program changing, now with a fe

Post by runner9 » Sat Sep 07, 2013 2:43 pm

Ricola wrote:Even if keeping the card it is basically just a gas card now that they removed all other incentives. Amex looking better now.
We've been using the card for all gas and otherwise only when AMEX isn't accepted. We use Fidelity Cash Rewards 2% AMEX for everything else.

ieee488
Posts: 1989
Joined: Thu Dec 10, 2009 8:57 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by ieee488 » Sat Sep 07, 2013 4:06 pm

nisiprius wrote:These deals always seem to be teasers, not worth the chasing. I fell for a Discover "Open Road" card a few years ago, it seemed so darned simple--5% back on every gas purchase up to a maximum of $5 a month, which was actually a decent fit for our car usage. We hadn't had it a year before they changed the terms of the deal; it was still 5% "cash back" but now it became extremely difficult to get the "cash back" rewards as cash back, i.e. to have it credited against your bill, rather than for buying a digital barbecue fork from their rewards partner. You could now redeem for "cash" only a minimum of $50, which, together with the $5/month cap, meant you had to wait at least ten months. And strangely enough, the website page where you were supposed to be able to do that had technical glitches, and I could never actually get it done online, I always ended up having to call a customer rep. And then they downgraded or discontinued it--I think to something like 1% on gas plus one of those rotating three-month crazy schemes.

Yes, I cancelled the card.

Yes, I cancelled the card with an unused twenty or thirty bucks of "cash back" rewards on it. It would have taken us forever to build the "cash back" up to the $50 redemption value... unless we were to hurry out to Home Depot and buy a $1200 snowblower during a home-and-garden rewards period or something.
I still have the Discover "Open Road" card. . They changed it to be 2.5% rewards.
And, the $50 for a statement credit is a "killer". Fortunately, or unfortunately, I drove alot, so I charged it up to $45 and exchanged it for a $50 Chipotle gift card.
I did not cancel it, but I don't use it. My gas purchases will be rotated with Chase Freedom's 5% rotating categories and Bank of America's 3%.

EDIT: If you have $20 or more, you should be able to get a gift card. Get something for it. Don't let the rewards go to waste.
Last edited by ieee488 on Sat Sep 07, 2013 4:10 pm, edited 1 time in total.
Dell Optiplex 3020 (Win7 Pro), Dell Precision M6300 (Ubuntu Linux 12.04), Dell Precision M6300 (Win7 Pro), Dell Latitude D531 (Vista)

ieee488
Posts: 1989
Joined: Thu Dec 10, 2009 8:57 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by ieee488 » Sat Sep 07, 2013 4:07 pm

cflannagan wrote:
stan1 wrote:Cash back is a gimmick, not an entitlement.
If you want to play the game be prepared to move on without whining when the rules are changed. :wink:
Don't troll up this thread. Thanks.
stan1 is right.
Move on when the rules change.
Dell Optiplex 3020 (Win7 Pro), Dell Precision M6300 (Ubuntu Linux 12.04), Dell Precision M6300 (Win7 Pro), Dell Latitude D531 (Vista)

User avatar
Drain
Posts: 1402
Joined: Mon Feb 26, 2007 1:27 pm
Location: Maryland

Re: PenFed Visa card for Gas program changing, now with a fe

Post by Drain » Sat Sep 07, 2013 4:41 pm

We have an auto loan with PenFed, so assuming that's an installment loan, we're okay. But even without that, it might not be that big a deal for me to have $250 direct-deposited from my paycheck and then just transfer that back to my main checking account at some point. Or maybe I can set up a periodic transfer, in which case no human intervention would be required.

The downside? I'd feel a little dirty.
Darin

THY4373
Posts: 1196
Joined: Thu Mar 22, 2012 3:17 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by THY4373 » Mon Sep 09, 2013 4:59 pm

mediahound wrote:I think I will drop this card.

I'm not buying as much gas as I used to now that I work from home and drive a Prius, so I can use another credit card that has no annual fee and gives 2% cash back on gas (Priceline Rewards Visa gives 2% on all purchases, Chase Amazon Visa gives 2% on gas, Amex Blue Cash Everyday gives 2% on gas). All of these have no annual fee.
Priceline 2% is dead for new customers. I got in just under the wire about 2-3 months ago.

THY4373
Posts: 1196
Joined: Thu Mar 22, 2012 3:17 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by THY4373 » Mon Sep 09, 2013 5:00 pm

DesertMan wrote:The Sallie Mae Rewards Card has 5% on gas and groceries, but there's a monthly cap. It's pretty reasonable though.

Edit: Oh, and bookstores. I wonder if Amazon counts?

https://www.salliemae.com/landing/WorldCreditCard/
Yes Amazon counts though some third party purchases on Amazon don't (it is hit or miss).

Topic Author
mediahound
Posts: 703
Joined: Fri Mar 02, 2007 5:43 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by mediahound » Mon Sep 09, 2013 5:05 pm

I applied for the Sallie Mae card for 5% CB on gas. Once I get it, it will replace my PenFed Visa.

guitarguy
Posts: 1787
Joined: Mon Dec 20, 2010 4:10 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by guitarguy » Mon Sep 09, 2013 5:09 pm

BrandonBogle wrote:
guitarguy wrote:
TomatoTomahto wrote:I might have missed this, but does a CD keep the gas % at 5%, or just avoid the $25 fee?
It keeps the card as is: no fee and 5% on gas.
Not quite as-is, as the card still loses the 0.25% on everything other than gas. But yes, it avoids the fee and keeps the 5% on gas.
Yeah...but for the people figuring out how to maximize rewards across multiple cards...like those who read threads like this...it's pretty unlikely losing that 0.25% will even apply. I'd bet most of us who use this card use it only for gas.

But true, not exactly as is. Just the parts that matter.

User avatar
cflannagan
Posts: 949
Joined: Sun Oct 21, 2007 11:44 am
Location: Palm Harbor, Florida

Re: PenFed Visa card for Gas program changing, now with a fe

Post by cflannagan » Mon Sep 09, 2013 6:35 pm

ieee488 wrote:
cflannagan wrote:
stan1 wrote:Cash back is a gimmick, not an entitlement.
If you want to play the game be prepared to move on without whining when the rules are changed. :wink:
Don't troll up this thread. Thanks.
stan1 is right.
Move on when the rules change.
We all were discussing with actual details/content, discussing alternative reward cards as well as how to eliminate fees, things of that nature. I've learned quite a bit from threads like this.

[OT comments removed by admin LadyGeek]

Topic Author
mediahound
Posts: 703
Joined: Fri Mar 02, 2007 5:43 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by mediahound » Mon Sep 16, 2013 8:49 am

DesertMan wrote:The Sallie Mae Rewards Card has 5% on gas and groceries, but there's a monthly cap. It's pretty reasonable though.

Edit: Oh, and bookstores. I wonder if Amazon counts?

https://www.salliemae.com/landing/WorldCreditCard/
I just got this card. Seems like a pretty good card for 5% back on groceries, gas (and books) with no annual fee. The cap is $250. per month so if you spend less than that in each of these categories, this car seems like a winner.

RockawayRay
Posts: 8
Joined: Wed Sep 18, 2013 5:30 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by RockawayRay » Wed Sep 18, 2013 6:10 pm

When I called to cancel my Platinum Cash Visa card,I was advised by the PenFed Rep. that they are amending their criteria for avoiding the annual fee of $25 and the rebate reduction to 3%.

This can be accomplished by opening a Money Market Savings account with a minimum balance of $25. Then, no fee would be charged and the rebate would remain at 5%.

A follow up to the original letter was sent out to this effect by PenFed Tuesday(9/17).

When the Rep asked me if I wanted to open the money market at this time,I told her that I would wait until I receive something in writing to confirm this new policy before I do so.

User avatar
runner9
Posts: 2089
Joined: Tue Aug 02, 2011 8:49 pm
Location: Ohio

Re: PenFed Visa card for Gas program changing, now with a fe

Post by runner9 » Wed Sep 18, 2013 6:50 pm

I still haven't gotten the letter stated the program is changing. Is this because I have a 5/5ARM with them, or should I have still gotten the letter?

Topic Author
mediahound
Posts: 703
Joined: Fri Mar 02, 2007 5:43 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by mediahound » Wed Sep 18, 2013 7:02 pm

RockawayRay wrote:When I called to cancel my Platinum Cash Visa card,I was advised by the PenFed Rep. that they are amending their criteria for avoiding the annual fee of $25 and the rebate reduction to 3%.

This can be accomplished by opening a Money Market Savings account with a minimum balance of $25. Then, no fee would be charged and the rebate would remain at 5%.

A follow up to the original letter was sent out to this effect by PenFed Tuesday(9/17).

When the Rep asked me if I wanted to open the money market at this time,I told her that I would wait until I receive something in writing to confirm this new policy before I do so.
They're probably getting cancelations in droves.

I too will wait to see something in writing on that before believing it.

jasonp99
Posts: 206
Joined: Tue Aug 11, 2009 3:58 pm
Location: TX

Re: PenFed Visa card for Gas program changing, now with a fe

Post by jasonp99 » Wed Sep 18, 2013 10:01 pm

THY4373 wrote:
Priceline 2% is dead for new customers. I got in just under the wire about 2-3 months ago.
Darn! I did not know that and still have been recommending this card to people. 2% on everything for the last 1.5 yrs has been great.

User avatar
mmmodem
Posts: 1861
Joined: Thu May 20, 2010 1:22 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by mmmodem » Wed Sep 18, 2013 10:32 pm

RockawayRay wrote:When I called to cancel my Platinum Cash Visa card,I was advised by the PenFed Rep. that they are amending their criteria for avoiding the annual fee of $25 and the rebate reduction to 3%.

This can be accomplished by opening a Money Market Savings account with a minimum balance of $25. Then, no fee would be charged and the rebate would remain at 5%.

A follow up to the original letter was sent out to this effect by PenFed Tuesday(9/17).

When the Rep asked me if I wanted to open the money market at this time,I told her that I would wait until I receive something in writing to confirm this new policy before I do so.
I've had $5 in a savings account with them for the past 2 years to maintain my membership. I guess $25 isn't a big deal. I hope this works out. Thanks for the info.

Topic Author
mediahound
Posts: 703
Joined: Fri Mar 02, 2007 5:43 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by mediahound » Wed Sep 18, 2013 10:38 pm

mmmodem wrote:
RockawayRay wrote:When I called to cancel my Platinum Cash Visa card,I was advised by the PenFed Rep. that they are amending their criteria for avoiding the annual fee of $25 and the rebate reduction to 3%.

This can be accomplished by opening a Money Market Savings account with a minimum balance of $25. Then, no fee would be charged and the rebate would remain at 5%.

A follow up to the original letter was sent out to this effect by PenFed Tuesday(9/17).

When the Rep asked me if I wanted to open the money market at this time,I told her that I would wait until I receive something in writing to confirm this new policy before I do so.
I've had $5 in a savings account with them for the past 2 years to maintain my membership. I guess $25 isn't a big deal. I hope this works out. Thanks for the info.
The Sallie Mae card is still better because in addition to 5% cashback on gas, it's also on groceries and books (Amazon).

But, if PenFed can let me keep the 5% cashback with just a $25. deposit, I will do it just in order to have more options should the Sallie Mae card program change in the future.

CashIsKing
Posts: 39
Joined: Thu Feb 24, 2011 10:15 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by CashIsKing » Thu Sep 19, 2013 9:04 am

Unless something changed in the last few days, the minimum money market or CD deposit required to keep the 5% gas rebate is $1000.00

RockawayRay
Posts: 8
Joined: Wed Sep 18, 2013 5:30 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by RockawayRay » Thu Sep 19, 2013 11:36 am

I am still waiting for the updated letter from PenFed as I would like to see the revision in writing.

The Rep. said the addition was for the Money Market Savings account which can be opened with a minimum balance of $25.

Topic Author
mediahound
Posts: 703
Joined: Fri Mar 02, 2007 5:43 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by mediahound » Thu Sep 19, 2013 11:39 am

RockawayRay wrote:I am still waiting for the updated letter from PenFed as I would like to see the revision in writing.

The Rep. said the addition was for the Money Market Savings account which can be opened with a minimum balance of $25.
They could have mis-information. PenFed is not known for their customer service...

User avatar
Gary
Posts: 146
Joined: Tue Feb 20, 2007 8:54 am
Location: Jacksonville FL

Re: PenFed Visa card for Gas program changing, now with a fe

Post by Gary » Thu Sep 19, 2013 12:14 pm

I received the following email from Pentagon Federal yesterday
Dear XXXX XXXX,

You recently received a change in terms notification from PenFed informing you about an annual fee, which would be assessed to you as well as a change to your rewards earning structure.

After further evaluation of the qualifying criteria, we have decided to expand the qualifying products to include:
• Thrifty Credit Service
• Personal Line of Credit
• Education Line of Credit
• Money Market Savings Accounts

As a result, your card features are as follows:

Gas Purchases at the Pump 5% cash back
All other purchases 0% cash back
Annual Fee None
Foreign Transaction Fee None

Thank you for your membership and we apologize for any inconvenience.
I checked the website, the minimum deposit for setting up a Money Market Savings is $25. I think I'll set one up.

--Gary

{Edited because the cut & paste of the email did not format correctly}

User avatar
White Coat Investor
Posts: 14341
Joined: Fri Mar 02, 2007 9:11 pm
Location: Greatest Snow On Earth

Re: PenFed Visa card for Gas program changing, now with a fe

Post by White Coat Investor » Thu Sep 19, 2013 2:08 pm

Wow, I'm glad I came back to this thread. $25 sure beats $1000.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

tj
Posts: 2762
Joined: Thu Dec 24, 2009 12:10 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by tj » Thu Sep 19, 2013 4:27 pm

Do they pull your credit report to to open the $25 savings account? It's too bad you can't just put $25 in your share account.

CashIsKing
Posts: 39
Joined: Thu Feb 24, 2011 10:15 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by CashIsKing » Thu Sep 19, 2013 4:43 pm

Sorry to disappoint, but a Money Market SAVINGS acct doesn't qualify. It must be a Money Market CERTIFICATE, which DOES have a $1000.00. I hope someone can prove me mistaken...I hate to give up this card.

User avatar
BrandonBogle
Posts: 2148
Joined: Mon Jan 28, 2013 11:19 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by BrandonBogle » Thu Sep 19, 2013 4:46 pm

CashIsKing wrote:Sorry to disappoint, but a Money Market SAVINGS acct doesn't qualify. It must be a Money Market CERTIFICATE, which DOES have a $1000.00. I hope someone can prove me mistaken...I hate to give up this card.
CashIsKing,
That was the case until PenFed started emailing some people a couple days ago (see a few posts further up) that they've re-evaluated and are including Money Market Savings accounts as well. Sadly, I doubt this will be the last revision to these terms in the near future, so know knows what happens before the year is out!

User avatar
cflannagan
Posts: 949
Joined: Sun Oct 21, 2007 11:44 am
Location: Palm Harbor, Florida

Re: PenFed Visa card for Gas program changing, now with a fe

Post by cflannagan » Thu Sep 19, 2013 4:46 pm

CashIsKing wrote:Sorry to disappoint, but a Money Market SAVINGS acct doesn't qualify. It must be a Money Market CERTIFICATE, which DOES have a $1000.00. I hope someone can prove me mistaken...I hate to give up this card.
Someone above paste letter word-for-word, and it does say Money Market "Savings" Accounts. Would they be using that term to describe Monday Market "Certificates" as well? If so, that's pretty darned confusing.

CashIsKing
Posts: 39
Joined: Thu Feb 24, 2011 10:15 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by CashIsKing » Thu Sep 19, 2013 4:48 pm

Oooops. I just read the post that showed they changed their mind. Please disregard mine! Sorry

User avatar
AnimalCrackers
Posts: 436
Joined: Mon Mar 19, 2007 1:37 pm
Location: Northern Front Range, Colorado

Re: PenFed Visa card for Gas program changing, now with a fe

Post by AnimalCrackers » Fri Sep 20, 2013 9:05 am

For what it's worth, between AmEx Blue Cash Preferred capping the 6% back on groceries and PenFed's latest gyrations with the 5% back on gas, we decided on a different approach. I expect it to be simpler, easier, and perhaps more stable and just as lucrative. My wife said she will appreciate the simplicity. It took a few hours to cancel two cards, apply for two, and switch all our automatic payments, but I think it will be less hassle overall.

We've gone from this:
AmEx Blue Cash Preferred for 6% back on groceries and some percentage of cash back on select department stores
AmEx Costco for 2% restaurants and travel and 3% back on Costco gas
PenFed Visa for 5% back on gas
Fidelity Visa for 1.5% back on everything else

To this:
Fidelity AmEx, 2% back for everything
Fidelity Visa, 1.5% back for everything that we can't buy on the Fidelity AmEx
Target Visa, 5% discount at Target and free shipping from Target and 1% cash back to my son's school
AmEx Costco, cancelling after final cash back received in February 2014.
"Everybody has a plan until they get punched in the face." -- philosopher Mike Tyson

CashIsKing
Posts: 39
Joined: Thu Feb 24, 2011 10:15 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by CashIsKing » Fri Sep 20, 2013 9:21 am

AnimalCrackers wrote:For what it's worth, between AmEx Blue Cash Preferred capping the 6% back on groceries and PenFed's latest gyrations with the 5% back on gas, we decided on a different approach. I expect it to be simpler, easier, and perhaps more stable and just as lucrative. My wife said she will appreciate the simplicity. It took a few hours to cancel two cards, apply for two, and switch all our automatic payments, but I think it will be less hassle overall.

We've gone from this:
AmEx Blue Cash Preferred for 6% back on groceries and some percentage of cash back on select department stores
AmEx Costco for 2% restaurants and travel and 3% back on Costco gas
PenFed Visa for 5% back on gas
Fidelity Visa for 1.5% back on everything else

To this:
Fidelity AmEx, 2% back for everything
Fidelity Visa, 1.5% back for everything that we can't buy on the Fidelity AmEx
Target Visa, 5% discount at Target and free shipping from Target and 1% cash back to my son's school
AmEx Costco, cancelling after final cash back received in February 2014.
I have the Amex Blue Cash Preferred, the Fidelity Amex, and the Penfed gas card. Maybe I'm missing something but it seems like you only reduced from 4 cards to 3 cards, and gave up 3% on gas ( the diff between the Penfed card and the Fidelity Amex card,) and gave up 4% on groceries (diff between Amex Blue and Fid. Amex.)

User avatar
AnimalCrackers
Posts: 436
Joined: Mon Mar 19, 2007 1:37 pm
Location: Northern Front Range, Colorado

Re: PenFed Visa card for Gas program changing, now with a fe

Post by AnimalCrackers » Fri Sep 20, 2013 9:30 am

CashIsKing wrote:
AnimalCrackers wrote:For what it's worth, between AmEx Blue Cash Preferred capping the 6% back on groceries and PenFed's latest gyrations with the 5% back on gas, we decided on a different approach. I expect it to be simpler, easier, and perhaps more stable and just as lucrative. My wife said she will appreciate the simplicity. It took a few hours to cancel two cards, apply for two, and switch all our automatic payments, but I think it will be less hassle overall.

We've gone from this:
AmEx Blue Cash Preferred for 6% back on groceries and some percentage of cash back on select department stores
AmEx Costco for 2% restaurants and travel and 3% back on Costco gas
PenFed Visa for 5% back on gas
Fidelity Visa for 1.5% back on everything else

To this:
Fidelity AmEx, 2% back for everything
Fidelity Visa, 1.5% back for everything that we can't buy on the Fidelity AmEx
Target Visa, 5% discount at Target and free shipping from Target and 1% cash back to my son's school
AmEx Costco, cancelling after final cash back received in February 2014.
I have the Amex Blue Cash Preferred, the Fidelity Amex, and the Penfed gas card. Maybe I'm missing something but it seems like you only reduced from 4 cards to 3 cards, and gave up 3% on gas ( the diff between the Penfed card and the Fidelity Amex card,) and gave up 4% on groceries (diff between Amex Blue and Fid. Amex.)
4 to 3 is correct, but I think I'm going to prefer the following analysis when paying for stuff, rather than monitoring PenFed's policies and how much I've spent that qualifies as groceries for the calendar year: Am I at Target? (No.) Can I pay with AmEx? (No.) Here's my Visa card. Cash back flows into my Fido brokerage account automatically.
"Everybody has a plan until they get punched in the face." -- philosopher Mike Tyson

User avatar
BrandonBogle
Posts: 2148
Joined: Mon Jan 28, 2013 11:19 pm

Re: PenFed Visa card for Gas program changing, now with a fe

Post by BrandonBogle » Fri Sep 20, 2013 9:41 am

As we often say on this forum, "Simplicity is king!"

Personally, I am 4 cards. PenFed Gas for gas and whatever needs Visa vs. AmEx, AmEx Blue Everyday for grocery-only, Target at Target, Fidelity AmEx for everything else. I don't even think about Target when planning, so my thoughts basically revolve around the 3 main cards.

CashIsKing
Posts: 39
Joined: Thu Feb 24, 2011 10:15 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by CashIsKing » Fri Sep 20, 2013 10:05 am

AnimalCrackers wrote:
CashIsKing wrote:
AnimalCrackers wrote:For what it's worth, between AmEx Blue Cash Preferred capping the 6% back on groceries and PenFed's latest gyrations with the 5% back on gas, we decided on a different approach. I expect it to be simpler, easier, and perhaps more stable and just as lucrative. My wife said she will appreciate the simplicity. It took a few hours to cancel two cards, apply for two, and switch all our automatic payments, but I think it will be less hassle overall.

We've gone from this:
AmEx Blue Cash Preferred for 6% back on groceries and some percentage of cash back on select department stores
AmEx Costco for 2% restaurants and travel and 3% back on Costco gas
PenFed Visa for 5% back on gas
Fidelity Visa for 1.5% back on everything else

To this:
Fidelity AmEx, 2% back for everything
Fidelity Visa, 1.5% back for everything that we can't buy on the Fidelity AmEx
Target Visa, 5% discount at Target and free shipping from Target and 1% cash back to my son's school
AmEx Costco, cancelling after final cash back received in February 2014.
I have the Amex Blue Cash Preferred, the Fidelity Amex, and the Penfed gas card. Maybe I'm missing something but it seems like you only reduced from 4 cards to 3 cards, and gave up 3% on gas ( the diff between the Penfed card and the Fidelity Amex card,) and gave up 4% on groceries (diff between Amex Blue and Fid. Amex.)
4 to 3 is correct, but I think I'm going to prefer the following analysis when paying for stuff, rather than monitoring PenFed's policies and how much I've spent that qualifies as groceries for the calendar year: Am I at Target? (No.) Can I pay with AmEx? (No.) Here's my Visa card. Cash back flows into my Fido brokerage account automatically.
Of course everyone has their own preferences, but I've had the Penfed gas card, for about 2 yrs and this is the first policy change i've seen, so "monitoring" their policies doesn't seem like much of an issue. Maybe more importantly, they evidently listened to their members' displeasure with the change, and made it easier to retain the 5% cash reward. How often do you see that?? As far as the groceries, I consider that the MOST valuable card I have. I'm pretty much assured of at least $285 per year from groceries ($360 less the $75 annual fee.) Plus 3% at dept stores. AND, if Penfed should change, the Amex card gives 3% on gas. Finally, "keeping track" of your spend requires only that you look at the summary they provide on the monthly statement. If only all financial decisions were as easy as the decision to keep the Amex Blue Preferred. But, as that old saying goes, "That's why Baskin Robbins makes 31 Flavors." <<Of course, nowadays its a gazillion flavors>>

CashIsKing
Posts: 39
Joined: Thu Feb 24, 2011 10:15 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by CashIsKing » Fri Sep 20, 2013 10:09 am

BrandonBogle wrote:As we often say on this forum, "Simplicity is king!"

Personally, I am 4 cards. PenFed Gas for gas and whatever needs Visa vs. AmEx, AmEx Blue Everyday for grocery-only, Target at Target, Fidelity AmEx for everything else. I don't even think about Target when planning, so my thoughts basically revolve around the 3 main cards.
As I just mentioned in my previous post, don't forget about 3% for dept stores from Amex Blue Pref. Sears, JC Penney, Macy's, etc. Not like weekly groceries, but nice to have

User avatar
AnimalCrackers
Posts: 436
Joined: Mon Mar 19, 2007 1:37 pm
Location: Northern Front Range, Colorado

Re: PenFed Visa card for Gas program changing, now with a fe

Post by AnimalCrackers » Fri Sep 20, 2013 10:20 am

CashIsKing wrote:
AnimalCrackers wrote:
CashIsKing wrote:
AnimalCrackers wrote:For what it's worth, between AmEx Blue Cash Preferred capping the 6% back on groceries and PenFed's latest gyrations with the 5% back on gas, we decided on a different approach. I expect it to be simpler, easier, and perhaps more stable and just as lucrative. My wife said she will appreciate the simplicity. It took a few hours to cancel two cards, apply for two, and switch all our automatic payments, but I think it will be less hassle overall.

We've gone from this:
AmEx Blue Cash Preferred for 6% back on groceries and some percentage of cash back on select department stores
AmEx Costco for 2% restaurants and travel and 3% back on Costco gas
PenFed Visa for 5% back on gas
Fidelity Visa for 1.5% back on everything else

To this:
Fidelity AmEx, 2% back for everything
Fidelity Visa, 1.5% back for everything that we can't buy on the Fidelity AmEx
Target Visa, 5% discount at Target and free shipping from Target and 1% cash back to my son's school
AmEx Costco, cancelling after final cash back received in February 2014.
I have the Amex Blue Cash Preferred, the Fidelity Amex, and the Penfed gas card. Maybe I'm missing something but it seems like you only reduced from 4 cards to 3 cards, and gave up 3% on gas ( the diff between the Penfed card and the Fidelity Amex card,) and gave up 4% on groceries (diff between Amex Blue and Fid. Amex.)
4 to 3 is correct, but I think I'm going to prefer the following analysis when paying for stuff, rather than monitoring PenFed's policies and how much I've spent that qualifies as groceries for the calendar year: Am I at Target? (No.) Can I pay with AmEx? (No.) Here's my Visa card. Cash back flows into my Fido brokerage account automatically.
Of course everyone has their own preferences, but I've had the Penfed gas card, for about 2 yrs and this is the first policy change i've seen, so "monitoring" their policies doesn't seem like much of an issue. Maybe more importantly, they evidently listened to their members' displeasure with the change, and made it easier to retain the 5% cash reward. How often do you see that?? As far as the groceries, I consider that the MOST valuable card I have. I'm pretty much assured of at least $285 per year from groceries ($360 less the $75 annual fee.) Plus 3% at dept stores. AND, if Penfed should change, the Amex card gives 3% on gas. Finally, "keeping track" of your spend requires only that you look at the summary they provide on the monthly statement. If only all financial decisions were as easy as the decision to keep the Amex Blue Preferred. But, as that old saying goes, "That's why Baskin Robbins makes 31 Flavors." <<Of course, nowadays its a gazillion flavors>>
Mine's a personal preference to be sure. I've just had enough with break-even points on annual fees, opening additional zombie accounts, and reminding the wife which card to use at Kohl's, why gift cards may be groceries and bar-filled beer growlers may be restaurant fare, etc. I'd like to skip the Target card entirely, but I can't bring myself to forego that 1% to the school.

Didn't PenFed make some change a few years back that effectively rendered it a "gas only" card? I had that card for years too, and I recall that I used it for more than gas at one point.
"Everybody has a plan until they get punched in the face." -- philosopher Mike Tyson

CashIsKing
Posts: 39
Joined: Thu Feb 24, 2011 10:15 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by CashIsKing » Fri Sep 20, 2013 10:36 am

AnimalCrackers wrote:
CashIsKing wrote:
AnimalCrackers wrote:
CashIsKing wrote:
AnimalCrackers wrote:For what it's worth, between AmEx Blue Cash Preferred capping the 6% back on groceries and PenFed's latest gyrations with the 5% back on gas, we decided on a different approach. I expect it to be simpler, easier, and perhaps more stable and just as lucrative. My wife said she will appreciate the simplicity. It took a few hours to cancel two cards, apply for two, and switch all our automatic payments, but I think it will be less hassle overall.

We've gone from this:
AmEx Blue Cash Preferred for 6% back on groceries and some percentage of cash back on select department stores
AmEx Costco for 2% restaurants and travel and 3% back on Costco gas
PenFed Visa for 5% back on gas
Fidelity Visa for 1.5% back on everything else

To this:
Fidelity AmEx, 2% back for everything
Fidelity Visa, 1.5% back for everything that we can't buy on the Fidelity AmEx
Target Visa, 5% discount at Target and free shipping from Target and 1% cash back to my son's school
AmEx Costco, cancelling after final cash back received in February 2014.
I have the Amex Blue Cash Preferred, the Fidelity Amex, and the Penfed gas card. Maybe I'm missing something but it seems like you only reduced from 4 cards to 3 cards, and gave up 3% on gas ( the diff between the Penfed card and the Fidelity Amex card,) and gave up 4% on groceries (diff between Amex Blue and Fid. Amex.)
4 to 3 is correct, but I think I'm going to prefer the following analysis when paying for stuff, rather than monitoring PenFed's policies and how much I've spent that qualifies as groceries for the calendar year: Am I at Target? (No.) Can I pay with AmEx? (No.) Here's my Visa card. Cash back flows into my Fido brokerage account automatically.
Of course everyone has their own preferences, but I've had the Penfed gas card, for about 2 yrs and this is the first policy change i've seen, so "monitoring" their policies doesn't seem like much of an issue. Maybe more importantly, they evidently listened to their members' displeasure with the change, and made it easier to retain the 5% cash reward. How often do you see that?? As far as the groceries, I consider that the MOST valuable card I have. I'm pretty much assured of at least $285 per year from groceries ($360 less the $75 annual fee.) Plus 3% at dept stores. AND, if Penfed should change, the Amex card gives 3% on gas. Finally, "keeping track" of your spend requires only that you look at the summary they provide on the monthly statement. If only all financial decisions were as easy as the decision to keep the Amex Blue Preferred. But, as that old saying goes, "That's why Baskin Robbins makes 31 Flavors." <<Of course, nowadays its a gazillion flavors>>
Mine's a personal preference to be sure. I've just had enough with break-even points on annual fees, opening additional zombie accounts, and reminding the wife which card to use at Kohl's, why gift cards may be groceries and bar-filled beer growlers may be restaurant fare, etc. I'd like to skip the Target card entirely, but I can't bring myself to forego that 1% to the school.

Didn't PenFed make some change a few years back that effectively rendered it a "gas only" card? I had that card for years too, and I recall that I used it for more than gas at one point.
You are correct on that point. I think it was 1% on non-gas purchases. Then changed to .25%. But I only ever considered it for gas. I have to laugh when you mention reminding your wife...I have the same problem! But fortunately she always remembers which card to use for gas & groceries. I also have a Credit Union card that gives me 4% on my $10,000 balance. It requires 10 debit uses per month. It all can get a bit daunting, but I must admit that I get a kick out of "getting over" on these companies. They don't get a dime in interest from me.

rdwarejr
Posts: 15
Joined: Tue Sep 28, 2010 11:49 am

Re: PenFed Visa card for Gas program changing, now with a fe

Post by rdwarejr » Fri Sep 20, 2013 11:02 am

My mindset was to call and cancel the card when I first received the $25 annual fee notice, but since Penfed changed the requirements to a $25 savings account, I called them yesterday and was told that yes indeed, I could do that but they also implemented another product which I already had... If you have overdraft protection, then they will waive the $25 annual fee. Hope this helps! Keeping the card, and I'm glad because it's been good to me!

:sharebeer

Post Reply